Slide 1: Groupon 4th Quarter Earnings
Groupon 4th Quarter Earnings March 15th, 2024
Slide 2: Agenda
Agenda Dusan Senkypl Interim CEO ● CEO Commentary ● Financial Overview Jiri Ponrt CFO ● Guidance ● Q&A Rana Kashyap SVP, Corp Dev & IR 2 2
Slide 3: Forward-looking statements and other information
Forward-looking statements and other information The statements contained in this release that refer to plans and expectations for the next quarter, the full year or the future are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act
Slide 4: CEO Commentary
CEO Commentary GROUPON
Slide 5: Fourth Quarter Key Takeaways
Fourth Quarter Key Takeaways 4Q23 Financial Metrics 4Q23 Financial Snapshot • Revenue -7% vs last year Total Revenue (YoY % Change) Revenue by Geography (YoY % Change) • 3rd consecutive quarter of positive Adjusted EBITDA • Positive $51M Free Cash Flow Balance Sheet Updates • Increased liquidity res
Slide 6: Update on Transformation Plan
Update on Transformation Plan We are moving to building phase of our transformation plan Streamline and simplify Building for growth Strengthened our Financial Position Foundational Projects Moving to Revamp Product Experience Improved topline trajectory Building Phase Fix the Supply Side of Marketp
Slide 7: New front-end
New front-end Goal: Redesign and reengineer the whole consumer experience (web + app) Feature Highlights: ● Redesigned Home, Browse, Deal, Checkout, Cart, and more ● Responsive (no more separate web and touch experience) ● Modern technology and faster response times Current status: ● New front-end c
Slide 8: Gifting v 1.0
Gifting v 1.0 Goal: build a brand new gifting proposition (web + app) to seize the Last-Minute Gifting Opportunity What was delivered in Q4: ● New Gift page ● Customizable & printable gift voucher ● Giftees can add voucher to their account ● Seamless gift voucher exchanges ● Groupon bucks Gift cards
Slide 9: Marketplace management
Marketplace management Demand side Supply side Q4 traffic trends Strong performers ● Continued positive growth in paid traffic ● Micro markets ● Improving trajectory of direct traffic ● Things to do ● Managed channels still lagging ● Enterprise Paid Marketing Launching Regionalisation ● Delivered desir
Slide 10: Groupon Investment Thesis
Groupon Investment Thesis Groupon is a 15 year old Company, but we see ourselves at Day Zero Large & Secular Growth Internet Marketplace Market Opportunity Business Model Global Scale & Brand Transformation Playbook High Performance Management Team with Execution Excellence Performance in a variety
Slide 11: Financial Overview
Financial Overview GROUPON
Slide 12: 4Q23 Summary Financial Results
4Q23 Summary Financial Results Gross Billings ($M) Revenue ($M) Marketing ($M) Revenue as % of Gross Billings Gross Profit as % of Revenue Marketing as % of Gross Profit Contribution Profit ($M) Adjusted EBITDA1 ($M) Free Cash Flow1 ($M) Contribution Profit as % of Revenue 12 1) Adjusted EBITDA (AEBITDA
Slide 13: 4Q23 Key Operating Metrics
4Q23 Key Operating Metrics Active Customers1 (Million) Local Gross Billings ($M) North America International North America International Travel Gross Billings ($M) Goods Gross Billings ($M) 13 1) Reflects the total number of unique user accounts that have made a purchase during the TTM either through
Slide 14: Creating an Efficient Cost Structure
Creating an Efficient Cost Structure New Mindset Of Frugality SG&A ($M) -35% year - over -year Increasing Efficiency Through Automation Of Business Processes Director-Level Headcount Reductions, Reducing Redundant Spend Decreasing Software / Cloud Spend Reducing Facilities Footprint 14 14
Slide 15: 4Q 2023 Adjusted EBITDA to FCF Reconciliation
4Q 2023 Adjusted EBITDA(1) to FCF(1) Reconciliation 4Q23A 3Q23A 2Q23A 1Q23A 2023 Adjusted EBITDA1 26.9 18.2 15.2 -4.9 55.5 1 (-) Capex -3.4 -4.1 -2.3 -9.5 -19.3 (-) Interest & Taxes -4.0 -4.4 -2.1 -4.1 -14.5 (+/-) Restructuring2 2.9 -1.3 -3.7 -5.9 -8.1 (+/-) Change in Net Working Capital 28.7 -26.4
Slide 16: Balance Sheet Update
Balance Sheet Update Completed Transactions Potential Future Transactions1 ● $19M partial sale of SumUp investment ~$100M Potential Future Non-Core Asset Sales, including ● Remaining stake in SumUp ● $80M Rights Offering ● GiftCloud ● Intellectual property ● $43M prepayment and termination of Credit
Slide 17: Guidance
Guidance 1Q24 Guidance ($ Millions) 2024 Guide ($ Millions) Preliminary view Low-end High-end Low-end High-end Revenue $113 $118 $489 $515 (-7% year-over-year) (-3% year-over-year) (-5% year-over-year) (0% year-over-year) Adjusted EBITDA* $7 $12 $80 $100 Free Cash Flow* Negative Negative Positive Po
Slide 18: GROUPON
GROUPON
Slide 19: Appendix
Appendix
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations* Adjusted EBITDA - Quarterly (in thousands) *See Q4 2023 earnings press release posted on our Investor Relations website for additional information regarding non-GAAP financial measures 20
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations* Free Cash Flow (in thousands) *See Q4 2023 earnings press release posted on our Investor Relations website for additional information regarding non-GAAP financial measures 21
Slide 22: Supplemental Information
Supplemental Information 22
Slide 23: Dusan self evaluation: Domain Knowledge
Dusan self evaluation To give stakeholders insight into the culture and performance bar we are setting for our people, find below Dusan’s 2023 self review. This was shared internally with all staff in March 2024 and is based on the Company's year end performance rating methodology. It was shared with
Slide 24: Initiative & Drive self evaluation
Initiative & Drive: 4 I have a lot of internal motivation to make an impact on several fronts. My goal is to see people grow, which is very satisfying, and my drive is to make Groupon successful. I also want to make an impact in my country - together with other Pale Fire Capital partners, our ambiti
Slide 25: Ability to Coach Others self evaluation
Ability to Coach Others: 2 This is another area of focus. Filip Popovic gives me daily inspiration, as he is supporting and growing the people around him. For me, a 3 here means that the person was able to grow their team and show examples of subordinates who grew in the last quarter. Ideally, that